According to Validus Risk Management, this year’s winner of best risk management service provider, the uncertainty and market volatility that resulted from Covid-19 over the past 12-18 months has highlighted the importance of a robust risk management framework.
According to Validus Risk Management, this year’s winner of best risk management service provider, the uncertainty and market volatility that resulted from Covid-19 over the past 12-18 months has highlighted the importance of a robust risk management framework.
“Having a disciplined approach to risk and being able to execute on that plan efficiently was a differentiating factor for many of our clients over the past 18 months,” says Bryan Cohen, Managing Director, Head of US Client Coverage, at Validus.
From a logistical perspective, the financial industry was able to adjust to the “new normal” relatively quickly, especially with the help of technology. “We have always viewed technology as a core element of our approach to risk management, and the events over the past 18 months have only clarified that commitment to our technology platform,” Cohen says.
Tech for risk management
The fundraising pace across sectors and asset classes in the PE industry has been quite strong in recent months. “As managers look to scale their business and roll out new strategies, there is naturally going to be a focus on streamlining systems and making processes as efficient as possible,” Cohen says. “This principle applies across all areas of the risk management function and can be facilitated by robust technology,” he adds.
Cohen feels that Validus was chosen to win this award for its risk management technology because the firm views its technology platform as a key value driver for current and prospective clients.
“Pairing our risk management advisory business with a robust technology platform that is built with our clients’ needs in mind, allows our clients to efficiently manage risk and streamline corporate functions and investor reporting,” Cohen comments.
In terms of key services and client requirements, as fundraising and deal-related activity has increased, demand for Validus’ various risk management and fund finance advisory solutions have continued to grow. In addition to efficiently managing market risk, leveraging its technology to improve controls and deliver more sophisticated investor reporting have been some common themes across its client base.
To support client demand, Validus has a number of growth initiatives across geography, client, and product spectrums. “We opened our New York office earlier this year and will likely be expanding into Asia next,” Cohen says.
He adds: “Additionally, while our core business is focused on private capital fund managers, we have expanded to tailor investing and hedging solutions for the institutional investor space. Finally, as client needs evolve, we are always focused on further developing our technology platform to ensure we continue to support our clients.”
Supporting growth
Over the next 12-18 months, Validus expects portfolio allocations to private capital to continue to grow, which is supportive of the recent trends in fundraising and investment activity. “We will continue to invest in our technology and people to ensure this client base is able to benefit from cutting-edge risk management, investing and financing solutions,” Cohen concludes.
Bryan Cohen, Managing Director, Head of US Client Coverage, Validus Risk Management
Bryan Cohen has 15 years of experience working in capital markets and has been focused on derivatives and risk management for the majority of his career. He spent the first half of his career covering corporates and private capital managers across interest rate and FX risk solutions. Most recently, he was at Goldman Sachs where he managed risk management strategy and execution for the firm’s private equity, credit, real estate and infrastructure funds. Cohen holds a bachelor’s degree in Industrial Engineering and Economics from Northwestern University and is also a CFA charterholder.
